THE MAIN INDEX may begin declining this week after five consecutive days of increases that caused it to 6,484.06 on Friday.
The benchmark Philippine Stock Exchange index (PSEi) gained 139.43 points or 2.19 percent in the previous trading session, claiming a weeklong scale that raised the index from 585.59 points or 10 percent on a weekly basis.
Value turnover grew 54 percent to a mean of P8.5 billion. Australian investors became net sellers, submitting an average net inflow of P4.12 million in the previous week’s average net outflow of P726.6 million.
“The local market staged a powerful rally which brought it up by 9.93 percent week-on-week. With the quick surge nonetheless, the local bourse is currently at the overbought territory, which makes it vulnerable to profit-taking. Therefore, we might see a return in this week’s trading.” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco stated in a text message.
Prospects of financial recovery backed with the easing of many quarantine rules and also the beginning of the launch of third-quarter revenue reports helped raise the market last week. The PSEi marked its very best week since June after breaking through the 6,000 level.
Although this week is expected to find some profit-taking, Mr. Tantiangco reported the PSEi remains likely to maintain its ground at the 6,000-6,100 support range due to sustained optimism for its fourth quarter.
Specific catalysts for the week’s trading is going to function as earnings accounts of BDO Unibank, Inc.; Manila Electric Co.; along with Puregold Price Club, Inc., online broker 2TradeAsia. Com said.
“(They) would set the tone for transactions, not just for their size (~P900 billion in market cap, 10.7% of PSEi basket) and contribution to their parent companies, but also as proxies to their respective businesses, being industry leaders, but” it stated in a market note.”
“An important price gap between 6,000 and 6,750 generated throughout the fall last March will be the next obstacle. This is likely to be the next support, particularly as the indicator attempts to find stabler floor over 6,000,” 2TradeAsia. Com said.
As for downside risks, Mr. Tantiangco of Philstocks explained investors are observing the coronavirus case count. Any spike as a result of the relaxation of these rules can cause investors to stress.
The Health Department reported 2,057 brand new coronavirus cases on Saturday, leading to a complete case count of 367,819.
Another factor which will pull the local market lower is any negative news on continuing talks for a US fiscal stimulus, as it may weigh on Wall Street and consequently spillover to the PSEi,” Mr Tantiangco said.
Philstocks is putting the marketplace’s support in 6,000-6,100 and immunity at 6,600. 2TradeAsia. Com put immediate service in 6,000 and resistance between 6,500 and also 6,750.